Securities Available for Sale

3 Months Ended

Mar. 31, 2024

Debt Securities, Available-for-Sale [Abstract]

NOTE 2 – SECURITIES AVAILABLE FOR SALE

Debt Securities

The fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at March 31, 2024 and December 31, 2023 were as follows:


March 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S Government sponsored entities	$	5,990	$	—	$	(728	)	$	5,262
Municipal – taxable		14,295		5		(2,645	)		11,655
Municipal – tax exempt		945		—		(39	)		906
Residential mortgage-backed		9,249		—		(665	)		8,584
Commercial mortgage-backed		995		—		(13	)		982
SBA(1) guaranteed debenture		356		—		(23	)		333
Total	$	31,830	$	5	$	(4,113	)	$	27,722

December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S Government sponsored entities	$	5,990	$	—	$	(704	)	$	5,286
Municipal – taxable		14,305		9		(2,522	)		11,792
Municipal – tax exempt		945		—		(28	)		917
Residential mortgage-backed		9,543		—		(600	)		8,943
Commercial mortgage-backed		992		—		(16	)		976
SBA guaranteed debenture		472		—		(30	)		442
Total	$	32,247	$	9	$	(3,900	)	$	28,356

(1) Small Business Administration

The Company’s mortgage-backed securities are primarily issued by agencies such as Fannie Mae and Ginnie Mae. There were no sales or calls of securities for the three months ended March 31, 2024 and 2023.

The amortized cost and fair value of the investment securities portfolio are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	March 31, 2024
	Amortized Cost		Estimated Fair Value
Due within one year	$	676	$	669
Due after one to five years		3,492		3,456
Due after five to ten years		4,072		3,565
Due after ten years		12,990		10,133
Commercial mortgage-backed		995		982
Residential mortgage-backed		9,249		8,584
SBA guaranteed debenture		356		333
Total	$	31,830	$	27,722

NOTE 2 – SECURITIES AVAILABLE FOR SALE (CONTINUED)

Carrying amounts of securities pledged to secure public deposits as of March 31, 2024 and December 31, 2023 were $9,066 and $9,350, respectively. At March 31, 2024 and December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

Securities with unrealized losses at March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:


	Less than 12 months				12 months or more					Total
March 31, 2024	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S Government sponsored entities	$	—	$	—	$	5,262	$	(728	)	$	5,262	$	(728	)
Municipal – taxable		—		—		10,955		(2,645	)		10,955		(2,645	)
Municipal – tax exempt		—		—		906		(39	)		906		(39	)
Residential mortgage-backed		—		—		8,584		(665	)		8,584		(665	)
Commercial mortgage-backed		—		—		982		(13	)		982		(13	)
SBA guaranteed debenture		—		—		333		(23	)		333		(23	)
Total temporarily impaired	$	—	$	—	$	27,022	$	(4,113	)	$	27,022	$	(4,113	)


	Less than 12 months					12 months or more					Total
December 31, 2023	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S Government sponsored entities	$	—	$	—		$	5,286	$	(704	)	$	5,286	$	(704	)
Municipal – taxable		—		—			11,087		(2,522	)		11,087		(2,522	)
Municipal – tax exempt		250		(1	)		667		(27	)		917		(28	)
Residential mortgage-backed		—		—			8,943		(600	)		8,943		(600	)
Commercial mortgage-backed		—		—			976		(16	)		976		(16	)
SBA guaranteed debenture		—		—			442		(30	)		442		(30	)
Total temporarily impaired	$	250	$	(1	)	$	27,401	$	(3,899	)	$	27,651	$	(3,900	)

Unrealized losses have not been recognized into income because the issuers bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continues to make timely principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

All of the securities except for two municipal-taxable securities have unrealized losses at March 31, 2024. None of the unrealized losses for these securities have been recognized into net income for the period ended March 31, 2024 because the issuer's bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the bonds approach their maturity date or reset date.